2015 (5) TMI 122

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.... Page 7 and 8. They are as under: "6.1 Whether, on the facts and in the circumstances of the case and in law, the Hon'ble Tribunal was justified in deleting the disallowance made by the A.O. u/s 40(a)(ib) of the deduction of STT claimed by the Assessee? 6.2 Whether, on the facts and circumstances of the case and in law, the Hon'ble Tribunal was justified in restoring back to the A.O. the issue regarding the loss said to have been incurred on account of error trade to examine afresh whether the loss occurred on account of error trades conducted by the Assessee on behalf of clients and if so, the loss has to be accepted as business loss in view of the decision of Hon'ble Tribunal Ahmedabad in the case of Parker Securities Lt....

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....ct matter of deduction in computing income chargeable under head "Profits and gains of business or profession". Mr.Malhotra submits that the nature of relationship is not to the knowledge of the Assessing Officer or authorities. The Assessing Officer rightly, therefore, disallowed this deduction. The Tribunal has permitted him. Though, the language of the statute prohibits the same by accepting the stand of the assessee that he is merely collecting tax which in any event was payable by the parties dealing with the shares, namely, its clients. 4. As far as remaining three questions are concerned, Mr.Malhotra would submit that though the issue regarding loss said to have been incurred on account of error trade has been sent back to the ass....

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.... the assessing officer. In this case the assessment year is 2005-06 and the assessee pointed out as to how this very tax which was to be collected by the stock exchange from every person being purchaser or seller has been collected and for remission and onward forwarding the same to the revenue. We do not see that we should go into any provision and particularly the deduction that could have been claimed on the basis of such payment by clients of the assessee. Beyond being a conjecture and surmise, we do not think that either the nature of the transaction or relationship itself was in dispute. The requisite details of the clients have been provided by the assessee clearly. If the parties are clients of the assessee and from whom brokerage i....